Builders renew interest in Marley Park

Homes started to rise this year on the empty lots in Marley Park's neighborhoods after three homebuilders started buying land in the master-planned Surprise community.

Surprise was booming with the rest of the West Valley when Marley Park opened in 2005. And just like the rest of the West Valley, it had a quick slide when the national real-estate market crashed.

"It was like surfing on a tidal wave when we first started," said Todd Hornback, director of community life for Marley Park. "And then things started to change for us in 2008, and then more dramatically last year. In spite of all of that, we're building homes again in Marley Park."

Scottsdale-based DMB Associates Inc., a high-end developer that created Verrado in Buckeye and DC Ranch in Scottsdale, had tried to deal with the fallow lots left after builders pulled out, but sales were slow for about 18 months.

Builders approached the developer about buying the lots late last year.

Marley Park marketing director Tracy Simmons said the community attracted multiple builders when it was first developed. Some went out of business, and others stopped building when the market stalled.

Houses started selling again about three months ago.

"Once they recapitalized and redeveloped their business plans in light of the new context, they sought us out," Hornback said of the builders.

Marley Park, like other developments in Surprise and elsewhere, is a sort of bellwether for the housing market. The cautious interest from homebuilders is one indication that the industry is improving. In Surprise, where there is plenty of room to grow, that's considered a good sign.

The outlook remains gloomy for many parts of the Valley, but homebuilders are finding that people who once were priced out of desirable suburbs now are taking advantage of lower prices.

Nearly half of the new houses bought this year are in the Southeast Valley communities of Mesa, Chandler and Gilbert. First-time buyers make up the biggest group of those buyers.

The activity in Marley Park, once out of reach to new buyers, helps illustrate that trend.

K. Hovnanian Homes was not an original Marley Park builder, but executives saw an opportunity in Surprise.

"The Northwest Valley has always been a strong market, it was just set back a little," said Andy Pedersen, regional director of marketing for K. Hovnanian.

Surprise continues to appeal because the city has invested in infrastructure and marketed its family atmosphere, Pedersen said.

A burst of activity convinced the builders that Marley Park would come back.

"I think a lot of people have just been watching the market and have seen that housing prices have really stabilized," Pedersen said. "At Marley Park, we see lots of people come through the doors."